Starting in May, eCommerce merchants will have a new tool at their disposal to help fight fraud in online transactions in real time, thanks to a new offering from MasterCard. The company today introduced “Expert Monitoring Fraud Scoring for Merchants,” a new that tool enhances merchants’ insight into card behavior beyond a website or a cardholder’s shopping cart.
MasterCard says that the service will provide merchants with a predictive fraud score for Card-Not-Present transactions in real time to help determine the likelihood that a transaction is fraudulent. The company said it makes uses of fraud detection models specifically designed for eCommerce merchants.
According to the Lexis-Nexis 2011 True Cost of Fraud Study, merchants incurred costs of more than $2.33 for every $1 of fraud committed, absorbing more than $102 billion in total losses in 2011.
The new tool will also benefits consumers (the cardholders), as it helps protect them from fraudulent transactions on their cards, while minimizing the potential that legitimate transactions are declined.
“Fraudsters are becoming increasingly sophisticated in their approach, so online merchants must be even more vigilant in their efforts to protect the integrity of the online shopping experience for cardholders,” says Johan Gerber, Group Head, Global Network Products for MasterCard Worldwide. “Our new tool allows acquirers and their participating merchants to look at the potential for fraud in a transaction in real time, and integrate the data into any existing fraud detection solution. This helps increase accuracy in fraud detection, and helps to reduce the bottom-line impact of fraud.”
MasterCard claims that based on simulations conducted, the tool could cut fraud losses by 15-30 percent for Merchants, simply by reviewing or automatically declining transactions deemed as high-risk.
MasterCard said that the tool would be available in May as an option for acquirers and their merchants globally on all Card-Not-Present transactions originating from U.S.-issued cards.